The Kennedy administration sought to use the conference to repair U.S. prestige damaged by the failure of Washington’s April 1961 mercenary invasion of Cuba at the Bay of Pigs, and to stem the spread of revolution to the rest of Latin America. In the hope of accomplishing these goals, the U.S. State Department was presenting its proposed Alliance for Progress to the conference for official ratification. Though U.S. diplomacy was striving to ostracize Cuba, it would be another six months before it would be able to bring about that country’s expulsion from the OAS. Guevara headed the Cuban delegation at the conference. Copyright © 1967, 2000 by Pathfinder Press, reprinted by permission. Subheadings are by the Militant.

BY ERNESTO CHE GUEVARA
Unable to strangle the revolution, the United States set out to isolate Cuba in order to make short shrift of it later. The Inter-American Economic and Social Conference, held in Punta del Este, Uruguay, in August 1961, was the preparation for this isolation. It aimed to demonstrate clearly that Cuba need not be reckoned with, that it had come only to boycott the conference and, acting "on orders from Moscow," to prevent the North Americans from granting "generous" loans to the Latin Americans....

The third noteworthy speech was that of [U.S. delegation head] Dillon, who was assigned to announce what was going to be done. His speech was very vague, without a single paragraph of substance.

"If we look forward and examine the external sources of capital--the international credit institutions, European countries, Japan, and the U.S.A., and take into account the likelihood of private and public investments--and if Latin America takes the necessary internal measures, these countries can expect an influx of capital of at least $20 billion in the next ten years. Most of these investments will come from government sources."

As one can see, there’s the condition expressed in the sentence, "if Latin America takes the necessary internal measures." The characteristics of this condition were not clearly explained, so its interpretation rests with the Yankee whim.  
 
Alliance for Progress: imperialist policy
Dillon’s speech expressed, to a certain extent, a new tendency in U.S. policy, one of modifying the system by which the Latin American peoples are exploited, and of shifting its relations away from feudalist forces and toward different sections of the parasitic bourgeoisie. The aim is to lessen internal discontent in each Latin American country by making minor concessions to the people and to sacrifice the most backward sections of society in the interests of the national bourgeoisie, on condition that these countries surrender their interests completely and renounce their own development. This tendency found expression in the so-called Kennedy Plan, which the president himself has given the pompous title of "Alliance for Progress." It was presented as the latest word in U.S. policy, although in reality it does not represent any change whatsoever in the traditional imperialist essence of this policy.

It cannot be said, however, that this tendency has prevailed completely in U.S. Latin American policy. The U.S. monopolies consider the old method of exploitation the most reliable one. They know it well and don’t find it easy to try "innovations" that pursue the same ends but seek to dress them up in sheep’s clothing.

It is important to point this out, because the Punta del Este conference has given rise to greater hopes than previous gatherings, and we might believe that this is something new, or the result of a new U.S. policy....

What conclusions can we draw for the future from this conference? We should state that even in the remote event of the $20 billion promise being kept, the "Alliance for Progress" would use this amount to finance a number of imperialist enterprises so they can develop their activities throughout Latin America, whether acting directly as foreign enterprises or as joint ventures, in this way continuing to take in fabulous profits.

In all probability the prices of raw material of which the United States is the principal buyer will also keep falling. This prediction can be safely made since the supply on the world market of raw materials produced in Latin America (coffee, cotton, tin, etc.) exceeds the demand. Plus the tendency is to develop new areas (for instance, coffee plantations in Africa).

The U.S. monopolies’ profits signify an export of dollars abroad. On top of this, the lowering of the prices of raw materials signifies fewer dollars coming in. Therefore there will be a greater or lesser deterioration in the balance of payments for nearly all Latin American countries. Moreover, the tendency is for the discrepancy between investments and exports of profits to grow.

From here on in, whenever a country needs help from international finance organizations for its shattered economy, the International Monetary Fund will step in, give its "wise and considered" opinion, and tighten even more its control over the economy of the country. Domestic credits will be curtailed, and the economy will be brought in line with the interests of the monopolies. This will happen sooner or later in every country of Latin America....

The working people of each Latin American country subjected to this system will day by day increase their desire to free themselves from oppression. From afar, they will see the example of Cuba as well as other examples, more distant perhaps, even more compelling--the great examples of the socialist countries and especially the Soviet Union, which took the first step toward the liberation of mankind. Quietly and full of wrath, the working people will go forward until some day, some place, the spark will ignite and a new revolutionary flame will be lit in the Americas. Forging ahead fatefully with the rapid steps of history during this convulsive moment for humanity, that day is approaching for all Latin America.  
 
 
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